Featured video

Brian Darling discusses special treatment for native Hawaiians, radical environmentalism and over-regulation.

How much will it cost you?

Imagine this nightmare economic scenario playing out over the next two decades:

$1.7 to $4.8 trillion—cumulative losses to economic output by 2030.

$155 billion to $500 billion—potential single-year losses to economic output.

500,000 to 1,000,000—annual job losses before 2030.

$100 billion—cost of new government permits mandated for energy users by 2020. This could exceed $300 billion by 2030.

$467—average additional cost per household each year for natural gas and electricity. That means that the average household will spend an additional $8,870 to purchase household energy over the period 2012 through 2030.

(All financial figures are in inflation-adjusted 2006 dollars.)

But this is no fantasy. This is the impact on our economy of climate change legislation now before lawmakers, according to a careful and thorough new analysis by The Heritage Foundation’s Center for Data Analysis.

The legislation, principally sponsored by Sens. Joe Lieberman (I-Conn.) and John Warner (R-Va.), would impose emissions caps on six greenhouse gasses. Those who produce such gasses would have to purchase a government permit, or “allowance” for the amount they emit. This will drive up energy costs and cause real problems for the economy.

“In addition to taking a bite out of consumers’ pocketbooks, the high energy prices throw a monkey wrench into the production side of the economy,” explain Heritage experts Bill Beach, David Kreutzer, Ben Lieberman and Nick Loris.

Economic growth, output and employment would all be reduced, despite liberal claims that such a program would result in economy-boosting “green investment” coupled with “green-collar” job creation.

What’s more, “the increase in energy costs creates correspondingly large transfers of income from private energy consumers to special interests.”

Iraq ‘is the war we must win’

To ensure the military’s long-term strength, America must commit itself above all to victory in Iraq, Secretary of Defense Robert Gates said Tuesday at a Heritage Foundation conference in Colorado Springs.

Many in the defense establishment suffer from “Next-War-itis,” Gates said. They focus not on the current conflict but on future wars. Iraq “is the war we must win,” he insisted.

But even as we focus on fighting the current war, we must be cognizant of future defense needs, Gates explained at a seminar Heritage organized to educate journalists. “We need to modernize our ageing inventory of aircraft, and build out a fleet of ships that right now is the smallest we’ve had since the late 1930s. These forces provide the strategic flexibility we need to deter, and if necessary, respond to, other competitors.”

Heritage experts have long argued in favor of modernizing the military in order to prepare, field and sustain the armed forces.

Honoring donor intent

The Heritage Foundation has recently taken a major and unprecedented step to ensure our members can remain confident in our commitment to conservative ideas.

“At The Heritage Foundation,” reads a new brochure sent to Heritage members, “we believe that we have an obligation to respect your philanthropic intent as a donor. We believe we are strictly accountable to you, and we pledge always to respect your philanthropic intent.”

» Read the full brochure online, including our ten-point plan to “always respect your philanthropic intent and always hold ourselves accountable to you in the use of your generous contributions.”

Other Heritage work of note

Entitlements. Instead of paring back the $25 billion annual taxpayer subsidy to multimillionaire farmers—many of whom are seeing incomes surge with high food prices—Congress is actually expanding the wasteful and counterproductive program. “President George W. Bush and reform-minded lawmakers should flat-out reject this farm bill that would cost taxpayers billions of dollars every year, distort food prices, and subsidize millionaires,” Heritage budget expert Brian Riedl writes. He outlines the proposal’s seven principal flaws and urges a Presidential veto.

First Principles. Out on the campaign trail, in the media and elsewhere, liberals claim their policies reflect a “bottom-up” agenda that benefits the least advantaged over wealthy elites. But campaign contributions tell a different story, Heritage Vice President Mike Franc explains in a new article. The data suggest that liberalism depends heavily on wealthy “limousine liberals” from the financial world, while elite groups like university professors, journalists and physicians contribute overwhelmingly to liberal candidates.

American Leadership. How sustainable is China’s political system? Heritage Asia expert Harvey Feldman hosted a discussion last week with two authors with differing views on the subject. Gordon Chang argued that China will soon topple as a result of an economic recession brought on by high inflation. James Mann, though, argued that China’s authoritarian rule is strong enough to centrally plan and adapt to any future turmoil. — Chris Albright

Energy.“Congress is about to legislate that the U.S. government stop purchasing oil for the Strategic Petroleum Reserve,” Heritage Foundation expert Ariel Cohen writes. “Some believe that this would bring gasoline prices down; in reality, however, shutting down the oil supply to the SPR would jeopardize the security of the United States, and infringe upon the executive authority of the President to ensure the nation's defense, while having no appreciate effect on gas prices. Congress should leave the SPR alone.”

American Leadership. With our ongoing reports on waste, fraud and abuse at the United Nations, The Heritage Foundation has established a firm reputation as a watchdog. In fact, before sitting down for a recent interview with Inner City Press, one U.N. bureaucrat asked the reporter, “Do you work for the Heritage Foundation?” The reporter recounts that as he pressed questions, the head of the U.N. TV program “continued to try to convince those under her control in UN TV of some Inner City Press - Heritage Foundation connection.” (No such connection exists.)

In other news

The federal government spent a record $244.5 billion last month. Unless we rein in runaway government spending, particularly on the increasingly bloated entitlement programs, the nation faces either European-style economic stagnation, growing deficits, high taxes—or all the above.

The House of Representatives has passed a misguided bailout for homeowners. President Bush has quite rightly threatened to veto the legislation if it crosses his desk. It appears opponents of the legislation have sufficient numbers to uphold a veto.

Iraqi officials report that Abu Ayyub al-Masri, the leader of al Qaeda in Iraq, has been captured by government forces.

Burma’s ruling junta finally permitted the first international aid into their country, several days after a large cyclone devastated the Southeast Asian nation and killed tens of thousands.

Coming up at Heritage

To attend these or any other events at Heritage please RSVP at Heritage’s website. Or you can view these events live online. All times are Eastern.

On Thursday, May 15 at noon, the chairman of the Broadcasting Board of Governors, James Glassman, gives a speech on public diplomacy with special emphasis on broadcasts to Afghanistan, Iran, Cuba, Syria, Russia, and Tibet.

On Monday, May 19 at noon, author Arthur Brooks discusses his new book and research on happiness and how it divides along cultural and political fault lines.

On Tuesday, May 20 at 11:00 a.m., security consultant Michael Sheehan explains how America can successfully crush terrorist cells.

Nathaniel Ward is the Editor of MyHeritage.org—a website for members and supporters of The Heritage Foundation. Chris Albright contributed to this report.